NYSE$PMT
PennyMac Mortgage Investment Trust · Q3 2023 earnings
Q3 2023 earnings · · Investor relations
Briefing
PennyMac reported net income of $51.0 million for the third quarter of 2023.
PennyMac Mortgage Investment Trust reported a net income attributable to common shareholders of $51.0 million, or $0.51 per common share, for the third quarter of 2023. The company's performance was driven by strong results across all segments, which were partially offset by tax impacts. The company also upsized a term loan, redeemed FMSR term notes, and issued unsecured senior notes to strengthen its balance sheet.
- Net income attributable to common shareholders was $51.0 million, up from $14.2 million in the prior quarter.
- Book value per common share increased to $16.01 at September 30, 2023, from $15.81 at June 30, 2023.
- Conventional correspondent loan production volumes for PMT’s account totaled $2.8 billion in unpaid principal balance (UPB).
- Invested $64 million into opportunistic investments throughout the quarter.
Headline financials
Revenue & EPS history
PennyMac · Revenue · Quarterly
-$25M
Revenue by segment
PennyMac · $163M total across 4 segments · Q3 2023
- Interest Rate Sensitive Strategies$104M-17.3%63.9%
- Credit Sensitive Strategies$41.5M+1531.8%25.4%
- Correspondent Production$15.2M-44.4%9.3%
- Corporate$2.25M+543.4%1.4%
Forward guidance
PennyMac expects the long-term return potential of its core assets to remain strong, supported by low rate mortgages with strong credit characteristics and significant home equity. With the expectation that interest rates remain higher for longer, they expect the runoff of these portfolios to remain low, driving strong expected risk-adjusted returns for PMT over a longer period of time.
Tailwinds
- Strong long-term return potential of core assets.
- Low rate mortgages with strong credit characteristics.
- Significant home equity supporting investments.
- Low portfolio runoff due to higher interest rates.
- Strong expected risk-adjusted returns over a longer period.
Headwinds
- Meaningful income contributions from all three of PMT’s investment strategies were partially offset by a provision for income taxes driven by fair value gains in its taxable REIT subsidiary.
- Changes in interest rates
- Volatility in the Company’s industry, the debt or equity markets, the general economy or the real estate finance and real estate markets
- The degree and nature of the Company’s competition
- The performance, financial condition and liquidity of borrowers
Historical earnings impact
How earnings announcements have historically affected this stock's price.
Avg. return before/after earnings
Based on 20 quarterly earnings reports · overlaid with Q3 2023
-0.9%
Avg return
Earnings day
-0.8%
Avg return
5 days after
+1.2%
Avg return
30 days after
42%
28 / 66 earnings
Positive
+16.4%
Q3 2023
Best reaction
-14.3%
Q4 2015
Worst reaction
| Quarter | Report date | Reaction (Day 0) | +5 days | +30 days |
|---|---|---|---|---|
| Q1 2026 | -9.1% | -11.3% | -16.2% | |
| Q4 2025 | -10.8% | -8.4% | -9.3% | |
| Q3 2025 | +8.4% | +7.7% | +8.3% | |
| Q2 2025 | -0.2% | -0.1% | +0.6% | |
| Q1 2025 | -6.9% | -4.5% | -7.5% | |
| Q4 2024 | +5.5% | +5.1% | +13.7% | |
| Q3 2024 | -2.1% | -1.5% | -3.4% | |
| Q2 2024 | -8.1% | -5.1% | -5.4% | |
| Q1 2024 | +1.7% | +0.7% | -2.4% | |
| Q4 2023 | -2.6% | -4.1% | -0.4% | |
| Q3 2023 | +16.4% | +19.9% | +30.5% | |
| Q2 2023 | -10.1% | -11.5% | -10.1% | |
| Q1 2023 | +7.3% | +1.7% | -1.2% | |
| Q4 2022 | -3.1% | -6.7% | -14.7% | |
| Q3 2022 | +10.6% | +8.7% | +21.1% | |
| Q2 2022 | -2.4% | -0.2% | -8.3% | |
| Q1 2022 | -3.0% | -3.9% | +0.7% | |
| Q4 2021 | -6.2% | -4.0% | -9.3% | |
| Q3 2021 | -4.2% | -6.6% | -11.2% | |
| Q2 2021 | -1.3% | -3.6% | +0.2% | |
| Q1 2021 | -1.6% | -5.2% | -1.0% | |
| Q4 2020 | +1.9% | +0.3% | +2.4% | |
| Q3 2020 | +0.3% | +7.7% | +15.7% | |
| Q2 2020 | -8.2% | -5.2% | -12.5% | |
| Q1 2020 | +3.7% | -5.9% | +49.8% | |
| Q4 2019 | +0.0% | -1.2% | -9.0% | |
| Q3 2019 | +1.0% | -0.9% | +1.4% | |
| Q2 2019 | -0.4% | -1.2% | -1.2% | |
| Q1 2019 | +2.3% | -0.9% | -1.0% | |
| Q4 2018 | +4.5% | +0.6% | +0.1% | |
| Q3 2018 | +5.8% | +6.2% | +9.0% | |
| Q2 2018 | +3.9% | +2.8% | +4.6% | |
| Q1 2018 | +4.2% | +2.9% | +6.7% | |
| Q4 2017 | +4.4% | +5.5% | +8.9% | |
| Q3 2017 | -6.2% | -7.6% | -3.0% | |
| Q2 2017 | -3.1% | -1.2% | -1.8% | |
| Q1 2017 | -1.0% | -2.7% | +0.5% | |
| Q4 2016 | -2.6% | -2.2% | -0.9% | |
| Q3 2016 | +6.0% | +8.7% | +8.1% | |
| Q2 2016 | -9.0% | -6.3% | -5.5% | |
| Q1 2016 | +4.6% | — | — | |
| Q4 2015 | -14.3% | — | — | |
| Q3 2015 | +3.5% | — | — | |
| Q2 2015 | -6.9% | — | — | |
| Q1 2015 | -10.2% | — | — | |
| Q4 2014 | -6.6% | — | — | |
| Q3 2014 | -0.2% | — | — | |
| Q2 2014 | +4.0% | — | — | |
| Q1 2014 | -6.7% | — | — | |
| Q4 2013 | -0.3% | — | — | |
| Q3 2013 | -4.5% | — | — | |
| Q2 2013 | +4.0% | — | — | |
| Q1 2013 | -1.1% | — | — | |
| Q4 2011 | +0.6% | — | — | |
| Q4 2012 | -2.7% | — | — | |
| Q3 2012 | +0.6% | — | — | |
| Q2 2012 | +0.6% | — | — | |
| Q1 2011 | +3.7% | — | — | |
| Q1 2012 | +1.2% | — | — | |
| Q4 2009 | -1.4% | — | — | |
| Q3 2011 | -0.4% | — | — | |
| Q3 2010 | -0.4% | — | — | |
| Q2 2010 | -4.1% | — | — | |
| Q2 2011 | -4.1% | — | — | |
| Q4 2010 | -4.1% | — | — | |
| Q1 2010 | +2.8% | — | — |
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